Backtesting strategies validate trading decisions from "summary" of Charting and Technical Analysis by Fred McAllen
Backtesting strategies are an essential tool for traders to assess the effectiveness of their trading decisions. This process involves applying a trading strategy to historical market data to see how it would have performed in the past. By backtesting a strategy, traders can gain valuable insights into its strengths and weaknesses, helping them make more informed decisions in the future. When traders backtest their strategies, they can see how their trading decisions would have played out in various market conditions. This allows them to evaluate the performance of their strategy over time and determine whether i...
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